The systemic excess of liquidity in the banking system and monetary exit strategies of ECB and FED

The aim of this master thesis is to analyze the unconventional monetary policy measures that were applied by the Federal Reserve System and the European Central Bank as a response to the current financial crisis, and the possibility of an exit strategy for each of the central banks. The first part of the thesis describes the theoretical background to the non-traditional monetary policy, specifically the quantitative easing. The second part focuses on two different cases of the QE application -- the Federal Reserve and the European Central Bank, highlighting the specific programs and their effects on the economy. The last part examines the possible return to the traditional monetary policy tools for each of the central banks, in the context of the current economic outlook and the specific measures that were implemented. The results of the paper are summarized in the conclusion of the master thesis.